PURBOTTAR PRADESHIYA MARWARI SANMELAN,GUWAHATI vs. CIT (EXEMPTION), KOLKATA

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ITA 75/KOL/2025Status: DisposedITAT Kolkata16 April 2025AY 2025-2026Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey (Judicial Member)4 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's application by the Ld. CIT(E) solely on the ground of selecting the wrong section code in Form 10AB was a technical mistake. The Tribunal noted that the assessee had applied afresh under clause 80G(v)(iii) in Form 10AB on 10.01.2025. Citing the decision in ITA No. 1553/Del/2024 in the case of Raj Krishan Jain Charitable Trust, where a similar technical mistake was considered curable and the matter was remanded, the ITAT restored the case to the file of the Ld. CIT(E). The Ld. CIT(E) was directed to pass a fresh order granting registration after curing the defects as per law. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Purbottar Pradeshiya Marwari Sanmelan, is a social organization registered under the Registrar of Societies Act, 1860. The assessee filed an application for registration under section 80G(5)(ii) of the Income Tax Act, 1961, in Form 10AB for Assessment Year 2025-26. The Commissioner of Income Tax (Exemption), Kolkata (Ld. CIT(E)), rejected the application, holding that the assessee had selected the wrong section code. The assessee had previously been granted provisional registration under section 80G(5) and was registered under section 12A(1)(ac)(i) for AY 2022-23 to AY 2026-27. The assessee appealed the rejection order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the rejection of the application for registration under section 80G(5)(ii) by the Ld. CIT(E) on the ground of selecting the wrong section code is erroneous and liable to be set aside, considering it as a curable defect? (Question of law and fact, turning on Section 80G(5)(ii) and Section 12A(1)(ac)(i)). Assessee's Contention: The assessee argued that selecting the wrong section code was a curable defect due to the unclear provisions at the time of application. They relied on their existing registrations under section 12A and provisional registration under section 80G. The assessee also submitted that they had applied afresh under clause 80G(v)(iii) in Form 10AB on 10.01.2025. Revenue's Contention: The Ld. DR supported the impugned order passed by the Ld. CIT(E).

Which sections of the Income-tax Act were involved?

Section 80G(5)(ii),Section 12A(1)(ac)(i),Section 80G(5),Section 80G(5)(iv),Section 80G(v)(iii),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH: KOLKATA

Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

ORDER / आदेश Per Pradip Kumar Choubey, JM:

This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Exemption)- Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 21.12.2024 for AY 2025-26.

Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan 2. Brief facts of the case of the assessee is that the assessee is a social organization registered under Registrar of Societies Act, 1860. The assessee filed an application for registration u/s 80G(5)(ii) of the Act in Form no. 10AB. The form of the assessee has been rejected by the Ld. CIT(E ) by holding that the assessee had selected the wrong section code while applying from 10AB.

3.

Being aggrieved and dissatisfied the assessee preferred an appeal before us.

4.

The Ld. Counsel for the assessee challenges the impugned order thereby submitting that the assessee is registered as AOP u/s 12A(1)(ac)(i) under the Income Tax Act, 1961 for the AY 2022-23 to AY 2026-27. The assessee has granted provisional registration u/s 80G(5) of the Act dated 24.11.2021 form 24.11.2021 to AY 20224-25. The Ld. Counsel submits that the assessee selected wrong section code as it was due to the provision of the above clause which was not clear and even if the assessee applied under wrong section code, it is a curable defect so the order passed by the Ld. CIT(E ) is erroneous and liable to be set aside.

5.

The Ld. D.R supports the impugned order.

6.

Upon hearing the submission of the counsel of the respective parties. The following facts have been emerged: i) The assessee is a social organization registered under Registrar under Societies Act, 1860. ii) the assessee granted provisional registration u/s 80G(5)(iv) of the first proviso vide Registration NO. AACAP 1739 JF20216 dated 24.11.2021 from 24.11.2021 to AY 2024-25. The assessee applied for registration under section 80G(5)(ii) of the first proviso to Act in form 10AB within the extended time.

7.

The Ld. CIT(E ) has rejected the application of the assessee only on this ground that the assessee had selected wrong section code while applying for form 10AB. It admits of no doubt that it is a technical mistake. The assessee has cited a decision passed Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan in dated 05.06.2024 in the case of Raj Krishan Jain Charitable Trust in which the Tribunal has held thus:

The appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of sub-clause (iii) of clause (ac) of Sub-section (1) of Section 12A of the Act. Hence the appeal is allowed and set aside the order of Ld. CIT(E ) dated 15.03.2024 and remand the matter back to the file of Ld. CIT(E ) for fresh adjudication by considering the amended application of the appellant under Section 12A(1)(ac)(iii) of the Act or he can call for amended application from the appellant.

8.

It is further pertinent to mention here that the assessee has applied afresh under clause 80G(v)(iii) in form 10AB on 10.01.2025. Keeping in view, the above facts and considering the order of ITAT the case is again restored to the file of Ld. CIT(E) for considering this case of the assessee. The Ld. CIT(E) shall pass a afresh order in granting registration of the assessee after curing the defects as per law.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order is pronounced in the open court on 16th April, 2025

Sd/- Sd/- (Rajesh Kumar/राजेश कुमार) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 16th April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Purbottar Pradeshiya Marwari Sanmelan, Brindavan Market, S. J. Road, Athgoan, Assam-781001 2. Respondent – CIT(E ), Kolkata 3. Ld. PCIT- , Kolkata 4. DR, Kolkata Benches, Kolkata (sent through e-mail)

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